For instance, one cyberattack method includes smart contracts — a piece of code on the blockchain that runs automatically once certain conditions are met. Smart contracts are set to guarantee that a buyer receives his digital assets like NFTs (non-fungible tokens) for example. However, scammers are installing malicious smart contracts that do the opposite of what they promote.
“We’re seeing malicious smart contracts where they get you to approve a transaction, but you’re actually executing a function that gives a third party access to all the tokens and cryptocurrency in your wallet,” Talos technical lead Jaeson Schultz told Insider. “It’s very easy for people to fall for these things because very few people are actually gonna take the time to actually read the smart contract, even if it is published.”
One dangerous scam could defraud millions
Researchers at Talos have also witnessed hackers promoting themselves as trusted brands. For example, one user on the popular blockchain platform Ethereum has claimed domain names like wellsfargo.eth, foxnews.eth and that could trick people into thinking that they are on a legitimate website.
